Why would I make a statement such as that? I mean these are happening everywhere Aren't they?. Even on television.


Let's take a trip back little. Can you think back when they were a rare event. The big house Blue world city Islamabad location that was owned by the local rich family or the farm or antiques or that kind of thing.


In the present, it appears that the case that every three-bedroom house is being pressured to sell their home that method.


Let's examine the factors that have triggered this increase, and also why they would have done it?


I like to go back to basics and ask the question: Who is the beneficiary? Since, whoever benefits most, it's likely that they're those driving the "A" truck, and are trying to get us all on the tray


The media barons are the culprits ... the big television and newspaper owners have convinced Real Estate Agents to push the auction process, as it is a huge source of advertising revenue.


Newspapers don't make money out of their news. The NEWS is only the basis for them to sell advertising and it's from advertising that they earn profits.


A lot of Real Estate managers have fallen to their line hook sinker and line. Agents have been turned into advertising salespeople for the newspapers.


So why does the big "A" appeal to the big real estate gurus?


1. It brings a sale to an end with the specific date ..."A" date "A" date.


2. The agent doesn't need to make a commitment to an achievable sale price.


3. The typical sale process is labor intensive and requires more skilled level.


4. The client is responsible for all advertising in advance.


5. Advertising helps the Agency appear large and successful, but with Client's Money.


6. All the pressure is put on the customer to make a sale.


7. Auctions that fail don't get a mention in the media


8. They receive a commission from newspapers by selling ads to them.


It brings the sale process to an end , with an exact time frame ..."A" date "A" time.


It sells or it doesn't! So it's pretty easy for the agent's boss to calculate his earnings from a regular flow of auctions.


Private Treaty sales require individual inspections and negotiations and an expiration date is difficult to establish.


The agent isn't required to agree to a realistic price for the sale.


At the time of the auction sales presentation, you, as the owner would like to be aware of the 'Price" you'll receive for your home.


The answer is always "THE MARK.' In reality, the story goes, THE MARKET typically recovers the advertising costs you need to pay upfront; particularly for a beautiful house like yours.


The typical sale process can be a challenging task that requires higher level of expertise. Agents, therefore, cannot give an estimated price, in which price your potential sale will be. It is a requirement that allows agents to recruit people who have a high sell "the auction' capabilities but with less knowledge of real estate.


The client is responsible for all advertising at the beginning.


Oh, and did I mention that you must make an enormous check of millions of dollars to advertise your property. You will be offered an advertising campaign that is well-planned and planned. You will only have two options: the pink one or the 'yellow one.'


That's $7,000 or the far superior one of $11,000. If your house is a high price ticket, you can double these expenses.


Advertising makes the Agency look big and successful However, the Agency is funded by the Client.


The campaign is now running and you first advert appears in the Color Pages. Yes , it's tiny Isn't that right? Actually, the most prominent FEATURE on the page is the AGENCY'S NAME. In addition we will have the picture of the salesperson further promoting the 'cult of character.'


Oh yes, then there is the image of your home, and some lines of text in typeface which you can simply read. You think maybe I should have chosen the bigger size ad.


We'll move towards the day prior to the auction, and once all your money has been spent. The auctioneer's agent and agent will visit you and explain to you that there has been an impressive response to the advertising. Of obviously, you don't know any idea of what qualifies as"good response.'


"We must establish a Reserve Price" they continue. As someone once said 'please explain?'


Oh, it's the bare minimum cost you'd be willing to pay! 'But.' you say, 'I didn't attend auction to get the MINIMUM PRICE. I'd prefer the MAXIMUM PRICE.' So what's this minimum price?'


"Well," the auctioneer says, 'now that we have finished this huge campaign for you,' they say, 'you want a result don't you, so let's not let those who turn up get away.' "No," you must say, 'I'm not looking for any results, I'd like the best price as well as my advertising costs back.' Question! How well do you sleep in the evening?


All the pressure is placed on the client to buy.


Let's skip now to the BIG DAY, and ask the question "who is most under pressure to perform the best job, you or the employee? I'm thinking it's YOU!


What will be the number of people who show up? Will they be 'Tyre Kickers and Sticky Beaks'? I've spent thousands dollars to get to this point. It's a good thing we're selling and, more importantly we sell it at a high price. The price will be higher than the price I could receive just selling it normally + my advertising costs.




Let's say that the ideal price for your house is $550,000.00, OK!


In the crowd there are several real buyers, whose qualifications vary from:


* Investors (who want to steal your property for a low price, such as $100,000 below)


* Normal home buyers (who will pay an amount that is fair, like $520,000.00)


* Finally, there is one buyer with a heart (who can pay the amount of $580,000.00).


As soon as the auction gets underway, it's easy to observe how investors are sucked off the bidding, in the end, they're looking to make a profit after an auction has failed or the vendor is in desperate need of money. However, they can start the ball rolling.


Next the bidding stops at $520,000.00 where the normal buyer is at their limit. They get knocked out when the Heart buyer goes an additional $5,000.00.


The house is with a price of $525,000.00 with no bidders to get it up to the potential top price of $580,000, which is the maximum bid of the bidder who made the last offered.


The auctioneer will stop proceedings and conduct an informal "pressure" conversation with you. Remember to know that the highest bidder might increase their bid.


No matter what words come out of his mouth the main message will be: "The highest bid I can make is $525,000.00 regardless of what I say , I will not get another bid. What do you think? Do you want to sell for $525,000.00, or do you not?


I have mentioned the stress earlier. Are you starting to feel it? After all, you've paid hundreds of dollars, and now you're $25,000.00 lower than the price you had in mind. If you do not say yes, the crowd disperses and you're stuck with a debt and the possibility of selling privately following the auction.


Auctions that aren't successful don't make it in the press.


Now comes the next problem. Since auctions are a PUBLIC event, all agents and neighbors are aware of the price at which the auction was unsuccessful. We're sorry, but that unsuccessful price is now "THE PRICE" and it's a struggle to get people to pay much more following the auction.


Are you aware of how auctions that are unsuccessful never appear to be newsworthy. Well, you see, it's a problem for any organization with a stake in the promotion of auctions. If you have newspapers or a television network, you can always develop an online program, and then make it an Auction.


Like any soapy after a while, people are convinced of auctions. They even think of themselves as the person who is on television. But , for us to keep in mind that entertainment is what it is.


They get a fee from newspapers by selling ads to them.


Did I tell you that the agents who promote auctions are really working for newspapers, which means obviously they're entitled paid? In fact, those who employ them are thrilled that they throw an annual with a black tie dinner.


They also give awards and prizes. So when you go into a big agency's office have you look at the plaques placed on the wall. "For the Agency which booked the highest Dollar Value Advertising for the month - year; for the agent within the Agency who booked the biggest Dollar Value Advertising during the month of the year etc.